ashok gajraj9694018818
DESCRIPTION
TRANSCRIPT
BY: ASHOK GAJRAJ
ESTABLISHED 9th November 1967
GOVT. OF INDIA 99.5 % HOLDING TURNOVER Rs.1839.79 Cr. ( 2008-09 ) MANPOWER 5405
INTRODUCTION TO THE ORGANIZATION
The Aravali hill is the host of copper minerals, with a 76km. long belt from Singhana to Raghunathgarh, popularly known as Khetri Copper belt.
KCC is located at Khetri Nagar near the old princely town of Khetri in Jhunjhunu district of Rajasthan which is 190 km. away from New Delhi and 175 km. away from Jaipur, capital of Rajasthan.
HISTORICAL BACKGROUND
To develop Indian copper industry on sound lines by exploring deposits and develop new copper deposits of adopting appropriate cost effective measures and introducing modern technology in order to maximize indigenous production there by minimizing imports.
Expansion of smelter plant to increase production of blister copper fro 31000 metric tones.
Development of Banwas Mines.Reducing cost by launching VR scheme to cut
short its excess manpower.
MISSION OF THE COMPANY
The present study was undertaken with the object of assessing the financial performance of Hindustan copper Ltd .The period of study was from 2005 to 2009.Financial performance of the Hindustan copper Ltd was measured with the help of Ratio Analysis & Trend Analysis.
FINANCIAL PERFORMANCE OF HCL
Ratio analysis is a powerful tool of financial analysis
Ratio analysis may be defined as the process of computing and interpreting relationship between the items of the financial statements for arriving at conclusions about the financial statements for arriving at conclusions about the financial position and performance of an enterprise
RATIO ANALYSIS
Year 2005 2006 2007 2008 2009
Current
ratio
1.66 2.61 0.996
0.926
1.173
Quick ratio 0.120 0.226 0.091
0.102
0.242
Cash ratio
0.001
0.0012
0.0007
0.0001
0.1010
Net working
capital
0.1547
0.2715
-
0.0056
-
0.1568
0.1983
Table showing Liquidity ratiosFor 5 years
Interpretation: The current ratio, quick ratio, cash ratio and net working capital ratio indicate that the short-term solvency and liquidity is below standard of the company. Thus the liquidity position of the company is not satisfactory.
Year 2005 2006 2007 2008 2009
Total assets
ratio
1.2 0.66 0.92 1.87 2.07
Net assets
turnover
ratio
1.48 0.77 2.34 5.86 4.44
Working
capital
turnover
9.59 2.87 -
418.69
-37.42 22.42
Table showing Activity ratiosFor 5 years
Interpretation: The above table indicates that the activity ratios of the company shows not satisfactory and shows under utilization of available resources.
Year 2006 2006 2007 2008 2009
Net Profit
Margin113 113 105 93 105
Return On
Total assets-10.79 -2.92 0.82 19.26 -3.89
Return On
Net Assets-13.34 -3.41 2.09 60.27 8.35
Table showing Profitability ratiosFor 5 years
Interpretation: The profitability ratios indicate the efficiency with which the operation of the business is carried out. Higher the ratio better is the operational efficiency of the concern. Since Net profit margin, return on total assets and return on net assets is negative or low. Generally the profit of the company is not satisfactory.
Trend analysis enables to know whether the financial position of a firm is improving or deteriorating over the years. The significance of a trend analysis of ratios lies in the fact that the analysts can know the direction of movement, that is, whether the movement is favorable or unfavorable
TREND ANALYSIS
Year 2005 2006 2007 2008 2009
Particulars Trend percentages
Sales 100 58 119 255 266
EBIT 100 28.07 -11.76 -291.96 55.68
PAT 100 28.07 -11.76 -291.96 55.68
Current
Assets
100 123.53 297.46 326.10 305.53
Current
Liabilities
100 78.28 494.39 582.99 431.19
Total Assets 100 103.73 155.24 163.58 154.29
Net worth 100 147.97 100.94 86.35
119.98
Table showing Trend Analysis for Five years
TREND ANALYSIS OF CURRENT ASSET AND CURRENT LIABILITY
0
100
200
300
400
500
600
2005 2006 2007 2008 2009
Current asset
Current liability
Interpretation:The above analysis shows that current liability is continuously increase more than current asset. This is show that the liquidity position of the organization will be low, it is not suitable to the organization.
PRODUCT PROFILE
Copper Rods
Copper Wire Bar
Gold
Silver
Defense
Railway electrification
Sales manufacturer
Other trades Defense
MAJOR CUSTOMERS
Electrical industry: Conductors cables winding wire and slips telecommunications cables, relays transformers fans motors.
Transportation: Automobiles partsAir Conditioning & Refrigeration Equipments :
Tube heat exchangersMints for coins.Building construction and Hand wares: Pipes
tapes sanitary fittings.Copper chemicals.
USES OF COPPER
The Company must take every step to ensure a continuous and regular supply of raw material, so as to accelerate the production.
Fertilizer plant should be restarted with new technology and new planning
The foremost suggestion is that the list of the items must be update and reviewed regularly.
The ABC, XYZ, and FSN analysis should be done once in a year
ERP system should be update regularly.
SUGGESTIONS
SPECIAL MOMENTS
THANK YOU